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DEAL OVERVIEW |
236 West 800 North
Spanish Fork, UT 84660 |
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| The Property |
| This is a home on a big lot in the old "block" section of town, current zoning: R1-6, future zoning: residential 5.5-8 units/acre. This lot is .38 acres (16,000 square feet), 85+ feet of frontage. The zone allows for duplexes, twin homes, and flag lots. |
| The Find |
| Found using automatic searches on the MLS. |
| The Technique |
| We proposed the multiple offer technique to the seller. All offers we rejected due to the seller being in bankruptcy (chapter 13). Continued follow-up, an expired listing and a new contract was accepted by the seller with an extended closing. |
| Highest and Best Use |
| Current zoning allows duplexes, twin-homes and flag lots. In this case the flag lot and new single family home is the highest and best use. |
| Current Use |
| The property is currently an older 2,100 square foot single family residence. |
| Acquisition Price |
| The property was purchased for $164,900. We were able to negotiate a 60 day close which allowed us to nearly complete an entitlement work for the subdivision and second lot. |
| Progress |
Short term: we plan to get the subdivision approved and sell both the house and the lot.
Long-term: we will build the house with an accessory apartment on the back lot and sell both properties or refinance and keep the new property long-term. |
| Profit Results |
| Short Term Estimated Profit |
Long Term Estimated Profit |
| Timelines - 1-3 Months |
Timelines - 6-8 Months |
| Future Value - $225,000 |
Future Value - $400,000 |
| Total Project Cost - $188,200 |
Total Project Cost - $344,800 |
| Projected Profit - $41,200 |
Projected Profit - $61,800 |
| Refinance Return - 22% |
Refinance Return - 28% |
| Back End Return - 22% |
Back End Return - 18% | |
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